Rural producers in municipalities affected by the floods in Rio Grande do Sul will have more time to pay their rural credit installments again. In an extraordinary meeting this Wednesday (23), the National Monetary Council (CMN) extended to November 27 the maturity of operations benefiting from the discounts provided for by the Decree 12,138published in August.
In a note, the Ministry of Finance informed that the extension could benefit around 2,200 credit operations, totaling R$430 million. The extension of the deadline applies to producers who submitted, by October 3, requests for renegotiation to the Special Commission for the Analysis of Rural Credit Operations of Rio Grande do Sul. The committee verifies the loss of income and production resulting from the floods in the state.
The extension benefits rural credit operations for funding, investment and industrialization with maturity from May 1st to November 26th. The producer, however, needs to have the installments up to date by April 30, shortly after the start of heavy rains in Rio Grande do Sul.
To receive the discount and be entitled to an extension, the borrower must prove a loss in income equal to or greater than 60% in individual, group or collective credit lines, as long as it was due to a landslide or the force of water in a flood. In operations contracted by agricultural production cooperatives, the loss must be equal to or greater than 30%.
At this Wednesday’s meeting, the CMN also authorized borrowers who did not have their renegotiation requests approved by the special committee to extend their debts without discount. The benefit applies to anyone who requests an extension from the bank that operates the credit line by November 26th.
The CMN is a collegiate body chaired by the Minister of Finance, Fernando Haddad, and composed of the president of the Central Bank (BC), Roberto Campos Neto, and the Minister of Planning and Budget, Simone Tebet. Due to the trip of the two ministers and the BC president to the United States this week, the Monetary Council meeting was held virtually.
